[January 21, 2014]BEIJING (Reuters) — China hit the
United States with final anti-dumping and anti-subsidy duties on
imports of solar-grade polysilicon on Monday, the latest move in
what has been a contentious trade battle in the solar industry.

The anti-dumping duties, announced by China's Commerce Ministry,
were in line with initial levels levied last year of up to 57
percent on imports of the raw material used to make solar panels.

Anti-subsidy duties on U.S. imports were set at 2.1 percent, lower
than the upper limit 6.5 percent preliminary duties set in
September.

The ministry also levied final anti-dumping duties on South Korean
polysilicon of between 2.4 percent and 12.3 percent.

An investigation concluded that China's producers "suffered
substantial harm" due to the United States and South Korea selling
below cost in the Chinese markets, and also due to U.S. subsidies,
the ministry said in statements on its website.

The duties would be effective immediately and last five years, it
said.

REC Solar Grade Silicon LLC and AE Polysilicon Corp were among the
hardest hit with anti-dumping duties at 57 percent.

Washington had called previously announced duties disappointing, and
many in the U.S. solar industry saw the move as an attempt to
protect China's struggling domestic firms.

The United States has already imposed its own duties of about 30
percent on Chinese solar panels in a case finalized in 2012.

China and the European Union have also soured their relations over
solar industry disputes.

Europe had planned to impose heavy tariffs on Chinese solar panels
but a majority of EU governments — led by Germany and wary of
offending China's leaders and losing business — opposed the plan and
sealed a compromise deal in July.

Chinese solar equipment producers like LDK Solar Co Ltd <LDK.N> are
struggling. China's State Council, or cabinet, has pledged to boost
support as the government seeks to revive a sector struggling with
overcapacity and falling prices.